ights. Subsequently, Kickstarter notified Hartley that selling distribution rights is a form of investment, which is forbidden by Kickstarter's terms and conditions, forcing Hartley to remove the option. In April 2013, filmmaker Zach Braff used a Kickstarter campaign to fund his upcoming film Wish I Was Here and raised $2 million in three days, citing the success of Rob Thomas' Veronica Mars Kickstarter as his inspiration. Some have criticized Braff for using the site, saying celebrity use of the site will draw attention away from filmmakers and other creatives who don't have celebrity name recognition, a criticism that had been previously made in regard to big figures in the gaming industry using Kickstarter (such as Richard Garriott, who created a successful $1+ million Kickstarter despite his large personal fortune). Kickstarter has disputed these arguments by reporting that, according to their metrics, big name projects tend to attract new visitors to the site who in turn pledge to other lesser known projects. Since 2013, several crowdfunding campaigns have been accused of creating fake contributors in order to fool the public into thinking the campaigns were successful, and to defraud potential sources of matching funds. In 2012, Amanda Palmer raised $1.2 million on Kickstarter. She wrote about how she used the money, however several other musicians reviewed these expenses and said they were extravagant and possibly fraudulent. She was further criticized for attempting to have musicians play with her for free on tour, after raising such a large sum. In May 2011, a New York University film student, Matias Shimada, raised $1,726 to make a film, but plagiarized another film instead. Later, he publicly apologized. Znaps Magnetic Charging adapter for mobile devices fails to deliver any of the finished products to any of the 70,000 backers despite the project being a huge financial success and securing deals with retailers and subsequently providing stock to multiple retailers. Patent Disputes On September 30, 2011, Kickstarter filed a declaratory judgment suit against ArtistShare in an attempt to invalidate U.S. crowd-funding patent US 7885887, "Methods and apparatuses for financing and marketing a creative work". Kickstarter asked that the patent be invalidated, or, at the very least, that the court find that Kickstarter is not liable for infringement. In February 2012, ArtistShare and Fan Funded responded to Kickstarter's complaint by filing a motion to dismiss the lawsuit. They asserted that patent infringement litigation was never threatened, that "ArtistShare merely approached Kickstarter about licensing their platform, including patent rights", and that "rather than responding to ArtistShare's request for a counter-proposal, Kickstarter filed this lawsuit." The judge ruled that the case could go forward. ArtistShare then responded by filing a counterclaim alleging that Kickstarter was indeed infringing its patent. In June 2015, Kickstarter won its lawsuit with the judge declaring ArtistShare's patent invalid. On November 21, 2012, 3D Systems filed a patent infringement lawsuit against Formlabs and Kickstarter for infringing its 3D printer patent US 5,597,520, ”Simultaneous multiple-layer curing in stereolithography.” Formlabs had raised $2.9 million in a Kickstarter campaign to fund its own competitive printer. The company said that Kickstarter caused "irreparable injury and damage" to its business by promoting the Form 1 printer, and taking a 5% cut of pledged funds. A sixmonth stay was granted by the judge for settlement talks in which Kickstarter did not participate. Page 74 of 115
On January 23, 2015, a patent infringement lawsuit was filed by Alphacap Ventures LLC against multiple crowdfunding platforms, including Indiegogo, CircleUp, GoFundMe, Kickstarter, Gust, RocketHub & Innovational Funding, for three patents — US 7848976, US 7908208 and US 8433630. According to Bloomberg, Alphacap Ventures is a company that provides strategic, operations, and financial advisory services in the United States along with other financial service. Page 75 of 115